Bill Text: NY S07386 | 2023-2024 | General Assembly | Introduced
Bill Title: Extends certain provisions of law relating to tax rates and the imposition of income taxes in the city of New York.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2023-08-23 - SIGNED CHAP.345 [S07386 Detail]
Download: New_York-2023-S07386-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 7386 2023-2024 Regular Sessions IN SENATE May 22, 2023 ___________ Introduced by Sen. SEPULVEDA -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations AN ACT to amend the tax law, the administrative code of the city of New York, chapter 877 of the laws of 1975, chapter 884 of the laws of 1975 and chapter 882 of the laws of 1977, relating to the imposition of certain taxes in the city of New York, in relation to postponing the expiration of certain tax rates and taxes in the city of New York The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraph 3 of subdivision (a) of section 1212-a of the tax 2 law, as amended by section 1 of subpart G of part XXX of chapter 58 of 3 the laws of 2020, is amended to read as follows: 4 (3) a tax, at the same uniform rate, but at a rate not to exceed four 5 and one-half per centum, in multiples of one-half of one per centum, on 6 the receipts from every sale of any or all of the following services in 7 whole or in part: credit rating, credit reporting, credit adjustment and 8 collection services, including, but not limited to, those services 9 provided by mercantile and consumer credit rating or reporting bureaus 10 or agencies and credit adjustment or collection bureaus or agencies, 11 whether rendered in written or oral form or in any other manner, except 12 to the extent otherwise taxable under article twenty-eight of this chap- 13 ter; notwithstanding the foregoing, collection services shall not 14 include those services performed by a law office or a law and collection 15 office, the maintenance or conduct of which constitutes the practice of 16 law, if the services are performed by an attorney at law who has been 17 duly licensed and admitted to practice law in this state. The local law 18 imposing the taxes authorized by this paragraph may provide for exclu- 19 sions and exemptions in addition to those provided for in such para- 20 graph. Provided, however, that the tax hereby authorized shall not be EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD11209-01-3S. 7386 2 1 imposed after November thirtieth, two thousand [twenty-three] 2 twenty-six. 3 § 2. Subsection (a) of section 1301 of the tax law, as amended by 4 section 2 of subpart G of part XXX of chapter 58 of the laws of 2020, is 5 amended to read as follows: 6 (a) Notwithstanding any other provision of law to the contrary, any 7 city in this state having a population of one million or more inhabit- 8 ants, acting through its local legislative body, is hereby authorized 9 and empowered to adopt and amend local laws imposing in any such city, 10 for taxable years beginning after nineteen hundred seventy-five: 11 (1) a tax on the personal income of residents of such city, at the 12 rates provided for under subsection (a) of section thirteen hundred four 13 of this article for taxable years beginning before two thousand [twen-14ty-four] twenty-seven, and at the rates provided for under subsection 15 (b) of section thirteen hundred four of this article for taxable years 16 beginning after two thousand [twenty-three] twenty-six, provided, howev- 17 er, that if, for any taxable year beginning after two thousand [twenty-18three] twenty-six, the rates set forth in such subsection (b) are 19 rendered inapplicable and the rates set forth in such subsection (a) are 20 rendered applicable, then the tax for such taxable year shall be at the 21 rates provided under subparagraphs (A) of paragraphs one, two and three 22 of such subsection (a), 23 (2) for taxable years beginning after nineteen hundred seventy-six, a 24 separate tax on the ordinary income portion of lump sum distributions of 25 such residents, at the rates provided for herein, such taxes to be 26 administered, collected and distributed by the commissioner as provided 27 for in this article. 28 § 3. Subsection (b) of section 1304 of the tax law, as amended by 29 section 3 of subpart G of part XXX of chapter 58 of the laws of 2020, is 30 amended to read as follows: 31 (b) A tax other than the city separate tax on the ordinary income 32 portion of lump sum distributions imposed pursuant to the authority of 33 section thirteen hundred one of this article shall be determined as 34 follows: 35 (1) Resident married individuals filing joint returns and resident 36 surviving spouses. The tax under this section for each taxable year on 37 the city taxable income of every city resident married individual who 38 makes a single return jointly with his or her spouse under subsection 39 (b) of section thirteen hundred six of this article and on the city 40 taxable income of every city resident surviving spouse shall be deter- 41 mined in accordance with the following table: 42 For taxable years beginning after two thousand [twenty-three] twenty- 43 six: 44 If the city taxable income is: The tax is: 45 Not over $21,600 1.18% of the city taxable income 46 Over $21,600 but not $255 plus 1.435% of excess 47 over $45,000 over $21,600 48 Over $45,000 but not $591 plus 1.455% of excess 49 over $90,000 over $45,000 50 Over $90,000 $1,245 plus 1.48% of excess 51 over $90,000S. 7386 3 1 (2) Resident heads of households. The tax under this section for each 2 taxable year on the city taxable income of every city resident head of a 3 household shall be determined in accordance with the following table: 4 For taxable years beginning after two thousand [twenty-three] twenty- 5 six: 6 If the city taxable income is: The tax is: 7 Not over $14,400 1.18% of the city taxable income 8 Over $14,400 but not $170 plus 1.435% of excess 9 over $30,000 over $14,400 10 Over $30,000 but not $394 plus 1.455% of excess 11 over $60,000 over $30,000 12 Over $60,000 $830 plus 1.48% of excess 13 over $60,000 14 (3) Resident unmarried individuals, resident married individuals 15 filing separate returns and resident estates and trusts. The tax under 16 this section for each taxable year on the city taxable income of every 17 city resident individual who is not a city resident married individual 18 who makes a single return jointly with his or her spouse under 19 subsection (b) of section thirteen hundred six of this article or a city 20 resident head of household or a city resident surviving spouse, and on 21 the city taxable income of every city resident estate and trust shall be 22 determined in accordance with the following table: 23 For taxable years beginning after two thousand [twenty-three] twenty- 24 six: 25 If the city taxable income is: The tax is: 26 Not over $12,000 1.18% of the city taxable income 27 Over $12,000 but not $142 plus 1.435% of excess 28 over $25,000 over $12,000 29 Over $25,000 but not $328 plus 1.455% of excess 30 over $50,000 over $25,000 31 Over $50,000 $692 plus 1.48% of excess 32 over $50,000 33 § 4. Subsection (a) of section 1304-B of the tax law, as amended by 34 section 4 of subpart G of part XXX of chapter 58 of the laws of 2020, is 35 amended to read as follows: 36 (a) (1) In addition to any other taxes authorized by this article, any 37 city imposing such taxes is hereby authorized and empowered to adopt and 38 amend local laws imposing in any such city for each taxable year begin- 39 ning after nineteen hundred ninety but before two thousand [twenty-four] 40 twenty-seven, an additional tax on the city taxable income of every city 41 resident individual, estate and trust, to be calculated for each taxable 42 year as follows: (i) for each taxable year beginning after nineteen 43 hundred ninety but before nineteen hundred ninety-nine, at the rate of 44 fourteen percent of the sum of the taxes for each such taxable year 45 determined pursuant to section thirteen hundred four and section thir- 46 teen hundred four-A of this article; and (ii) for each taxable year 47 beginning after nineteen hundred ninety-eight, at the rate of fourteen 48 percent of the tax for such taxable year determined pursuant to such 49 section thirteen hundred four. 50 (2) Notwithstanding paragraph one of this subsection, for each taxable 51 year beginning after nineteen hundred ninety-nine but before two thou-S. 7386 4 1 sand [twenty-four] twenty-seven, any city imposing such additional tax 2 may by local law impose such tax at a rate that is less than fourteen 3 percent and may impose such tax at more than one rate depending upon the 4 filing status and city taxable income of such city resident individual, 5 estate or trust. 6 (3) A local law enacted pursuant to paragraph two of this subsection 7 shall be applicable with respect to any taxable year only if it has been 8 enacted on or before July thirty-first of such year. A certified copy of 9 such local law shall be mailed by registered mail to the department at 10 its office in Albany within fifteen days of its enactment. However, the 11 department may allow additional time for such certified copy to be 12 mailed if it deems such action to be consistent with its duties under 13 this article. 14 § 5. Paragraph E of subdivision 1 of section 11-604 of the administra- 15 tive code of the city of New York, as amended by section 5 of subpart G 16 of part XXX of chapter 58 of the laws of 2020, is amended to read as 17 follows: 18 E. For taxable years beginning on or after January first, nineteen 19 hundred seventy-eight but before January first, two thousand [twenty-20four] twenty-seven, the tax imposed by subdivision one of section 11-603 21 of this subchapter shall be, in the case of each taxpayer: 22 (a) whichever of the following amounts is the greatest: 23 (1) an amount computed, for taxable years beginning before nineteen 24 hundred eighty-seven, at the rate of nine per centum, and for taxable 25 years beginning after nineteen hundred eighty-six, at the rate of eight 26 and eighty-five one-hundredths per centum, of its entire net income or 27 the portion of such entire net income allocated within the city as here- 28 inafter provided, subject to any modification required by paragraphs (d) 29 and (e) of subdivision three of this section, 30 (2) an amount computed at one and one-half mills for each dollar of 31 its total business and investment capital, or the portion thereof allo- 32 cated within the city, as hereinafter provided, except that in the case 33 of a cooperative housing corporation as defined in the internal revenue 34 code, the applicable rate shall be four-tenths of one mill, 35 (3) an amount computed, for taxable years beginning before nineteen 36 hundred eighty-seven, at the rate of nine per centum, and for taxable 37 years beginning after nineteen hundred eighty-six, at the rate of eight 38 and eighty-five one-hundredths per centum, on thirty per centum of the 39 taxpayer's entire net income plus salaries and other compensation paid 40 to the taxpayer's elected or appointed officers and to every stockholder 41 owning in excess of five per centum of its issued capital stock minus 42 fifteen thousand dollars (subject to proration as hereinafter provided) 43 and any net loss for the reported year, or on the portion of any such 44 sum allocated within the city as hereinafter provided for the allocation 45 of entire net income, subject to any modification required by paragraphs 46 (d) and (e) of subdivision three of this section, provided, however, 47 that for taxable years beginning on or after July first, nineteen 48 hundred ninety-six, the provisions of paragraph H of this subdivision 49 shall apply for purposes of the computation under this clause, or 50 (4) for taxable years ending on or before June thirtieth, nineteen 51 hundred eighty-nine, one hundred twenty-five dollars, for taxable years 52 ending after June thirtieth, nineteen hundred eighty-nine and beginning 53 before two thousand nine, three hundred dollars, and for taxable years 54 beginning after two thousand eight: 55 If New York city receipts are: Fixed dollar minimum tax is: 56 Not more than $100,000 $25S. 7386 5 1 More than $100,000 but not over $250,000 $75 2 More than $250,000 but not over $500,000 $175 3 More than $500,000 but not over $1,000,000 $500 4 More than $1,000,000 but not over $5,000,000 $1,500 5 More than $5,000,000 but not over $25,000,000 $3,500 6 Over $25,000,000 $5,000 7 For purposes of this clause, New York city receipts are the receipts 8 computed in accordance with subparagraph two of paragraph (a) of subdi- 9 vision three of this section for the taxable year. For taxable years 10 beginning after two thousand eight, if the taxable year is less than 11 twelve months, the amount prescribed by this clause shall be reduced by 12 twenty-five percent if the period for which the taxpayer is subject to 13 tax is more than six months but not more than nine months and by fifty 14 percent if the period for which the taxpayer is subject to tax is not 15 more than six months. If the taxable year is less than twelve months, 16 the amount of New York city receipts for purposes of this clause is 17 determined by dividing the amount of the receipts for the taxable year 18 by the number of months in the taxable year and multiplying the result 19 by twelve, plus; 20 (b) an amount computed at the rate of three-quarters of a mill for 21 each dollar of the portion of its subsidiary capital allocated within 22 the city as hereinafter provided. 23 In the case of a taxpayer which is not subject to tax for an entire 24 year, the exemption allowed in clause three of subparagraph (a) of this 25 paragraph shall be prorated according to the period such taxpayer was 26 subject to tax. Provided, however, that this paragraph shall not apply 27 to taxable years beginning after December thirty-first, two thousand 28 [twenty-three] twenty-six. For the taxable years specified in the 29 preceding sentence, the tax imposed by subdivision one of section 11-603 30 of this subchapter shall be, in the case of each taxpayer, determined as 31 specified in paragraph A of this subdivision, provided, however, that 32 the provisions of paragraphs G and H of this subdivision shall apply for 33 purposes of the computation under clause three of subparagraph (a) of 34 such paragraph A. 35 § 6. The opening paragraph of section 11-1701 of the administrative 36 code, as amended by section 6 of subpart G of part XXX of chapter 58 of 37 the laws of 2020, is amended to read as follows: 38 A tax is hereby imposed on the city taxable income of every city resi- 39 dent individual, estate and trust determined in accordance with the 40 rates set forth in subdivision (a) of this section for taxable years 41 beginning before two thousand [twenty-four] twenty-seven, and in accord- 42 ance with the rates set forth in subdivision (b) of this section for 43 taxable years beginning after two thousand [twenty-three] twenty-six. 44 Provided, however, that if, for any taxable year beginning after two 45 thousand [twenty-three] twenty-six, the rates set forth in such subdivi- 46 sion (b) are rendered inapplicable and the rates set forth in such 47 subdivision (a) are rendered applicable, then the tax for such taxable 48 year shall be at the rates provided under subparagraph (A) of paragraphs 49 one, two and three of such subdivision (a). 50 § 7. Subdivision (b) of section 11-1701 of the administrative code of 51 the city of New York, as amended by section 7 of subpart G of part XXX 52 of chapter 58 of the laws of 2020, is amended to read as follows: 53 (b) Rate of tax. A tax imposed pursuant to this section shall be 54 determined as follows: 55 (1) Resident married individuals filing joint returns and resident 56 surviving spouses. The tax under this section for each taxable year onS. 7386 6 1 the city taxable income of every city resident married individual who 2 makes a single return jointly with his or her spouse under subdivision 3 (b) of section 11-1751 of this title and on the city taxable income of 4 every city resident surviving spouse shall be determined in accordance 5 with the following table: 6 For taxable years beginning after two thousand [twenty-three] twenty- 7 six: 8 If the city taxable income is: The tax is: 9 Not over $21,600 1.18% of the city taxable income 10 Over $21,600 but not $255 plus 1.435% of excess 11 over $45,000 over $21,600 12 Over $45,000 but not $591 plus 1.455% of excess 13 over $90,000 over $45,000 14 Over $90,000 $1,245 plus 1.48% of excess 15 over $90,000 16 (2) Resident heads of households. The tax under this section for each 17 taxable year on the city taxable income of every city resident head of a 18 household shall be determined in accordance with the following table: 19 For taxable years beginning after two thousand [twenty-three] twenty- 20 six: 21 If the city taxable income is: The tax is: 22 Not over $14,400 1.18% of the city taxable income 23 Over $14,400 but not $170 plus 1.435% of excess 24 over $30,000 over $14,400 25 Over $30,000 but not $394 plus 1.455% of excess 26 over $60,000 over $30,000 27 Over $60,000 $830 plus 1.48% of excess 28 over $60,000 29 (3) Resident unmarried individuals, resident married individuals 30 filing separate returns and resident estates and trusts. The tax under 31 this section for each taxable year on the city taxable income of every 32 city resident individual who is not a married individual who makes a 33 single return jointly with his or her spouse under subdivision (b) of 34 section 11-1751 of this title or a city resident head of a household or 35 a city resident surviving spouse, and on the city taxable income of 36 every city resident estate and trust shall be determined in accordance 37 with the following table: 38 For taxable years beginning after two thousand [twenty-three] twenty- 39 six: 40 If the city taxable income is: The tax is: 41 Not over $12,000 1.18% of the city taxable income 42 Over $12,000 but not $142 plus 1.435% of excess 43 over $25,000 over $12,000 44 Over $25,000 but not $328 plus 1.455% of excess 45 over $50,000 over $25,000 46 Over $50,000 $692 plus 1.48% of excess 47 over $50,000 48 § 8. Paragraph 1 of subdivision (a) of section 11-1704.1 of the admin- 49 istrative code of the city of New York, as amended by section 8 of 50 subpart G of part XXX of chapter 58 of the laws of 2020, is amended to 51 read as follows:S. 7386 7 1 (1) In addition to any other taxes imposed by this chapter, there is 2 hereby imposed for each taxable year beginning after nineteen hundred 3 ninety but before two thousand [twenty-four] twenty-seven, an additional 4 tax on the city taxable income of every city resident individual, estate 5 and trust, to be calculated for each taxable year as follows: (i) for 6 each taxable year beginning after nineteen hundred ninety but before 7 nineteen hundred ninety-nine, at the rate of fourteen percent of the sum 8 of the taxes for each such taxable year determined pursuant to section 9 11-1701 and section 11-1704 of this subchapter; and (ii) for each taxa- 10 ble year beginning after nineteen hundred ninety-eight, at the rate of 11 fourteen percent of the tax for such taxable year determined pursuant to 12 such section 11-1701. 13 § 9. Subdivision (a) of section 11-2002 of the administrative code of 14 the city of New York, as amended by section 9 of subpart G of part XXX 15 of chapter 58 of the laws of 2020, is amended to read as follows: 16 (a) There are hereby imposed and there shall be paid sales taxes at 17 the rate of four and one-half percent on receipts from every sale of the 18 services of beauty, barbering, hair restoring, manicuring, pedicuring, 19 electrolysis, massage services and similar services, and every sale of 20 services by weight control salons, health salons, gymnasiums, turkish 21 and sauna bath and similar establishments and every charge for the use 22 of such facilities, whether or not any tangible personal property is 23 transferred in conjunction therewith; but excluding services rendered by 24 a physician, osteopath, dentist, nurse, physiotherapist, chiropractor, 25 podiatrist, optometrist, ophthalmic dispenser or a person performing 26 similar services licensed under title eight of the education law, as 27 amended, and excluding such services when performed on pets and other 28 animals, as authorized by subdivision (a) of section twelve hundred 29 twelve-A of the tax law. Provided, however, that the tax hereby imposed 30 shall not be imposed after November thirtieth, two thousand [twenty-31three] twenty-six. 32 § 10. The opening paragraph of subdivision (a) of section 11-2040 of 33 the administrative code of the city of New York, as amended by section 34 10 of subpart G of part XXX of chapter 58 of the laws of 2020, is 35 amended to read as follows: 36 There is hereby imposed within the city and there shall be paid a tax 37 at the rate of four and one-half percent upon the receipts from every 38 sale, except for resale, of the following services, provided, however, 39 that the tax hereby imposed shall not be imposed after November thirti- 40 eth, two thousand [twenty-three] twenty-six, on receipts from sales of 41 the services specified in paragraph one of this subdivision: 42 § 11. Section 4 of chapter 877 of the laws of 1975, relating to the 43 imposition of certain taxes in the city of New York, as amended by 44 section 11 of subpart G of part XXX of chapter 58 of the laws of 2020, 45 is amended to read as follows: 46 § 4. This act shall expire on December 31, [2023] 2026, provided, 47 however, that it is hereby declared to be the express intention of the 48 legislature that the provisions of sections two and three of this act, 49 except with respect to the enforcement and collection of any tax arising 50 thereunder, shall remain in full force and effect only until the date of 51 such expiration, at which time the provisions of law amended by this act 52 shall be continued in full force and effect as they existed prior to the 53 enactment of this act. 54 § 12. Section 6 of chapter 884 of the laws of 1975, relating to the 55 imposition of certain taxes in the city of New York, as amended byS. 7386 8 1 section 12 of subpart G of part XXX of chapter 58 of the laws of 2020, 2 is amended to read as follows: 3 § 6. This act shall expire on December 31, [2023] 2026, provided, 4 however, that it is hereby declared to be the express intention of the 5 legislature that the provisions of sections two, three and four of this 6 act, except with respect to the enforcement and collection of any tax 7 arising thereunder, shall remain in full force and effect only until the 8 date of such expiration, at which time the provisions of law amended by 9 this act shall be continued in full force and effect as they existed 10 prior to the enactment of this act. 11 § 13. Section 2 of chapter 882 of the laws of 1977, relating to the 12 imposition of certain taxes in the city of New York, as amended by 13 section 13 of subpart G of part XXX of chapter 58 of the laws of 2020, 14 is amended to read as follows: 15 § 2. This act shall expire on December 31, [2023] 2026, provided, 16 however, that it is hereby declared to be the express intention of the 17 legislature that the provisions of section one of this act, except with 18 respect to the enforcement and collection of any tax arising thereunder, 19 shall remain in full force and effect only until the date of such expi- 20 ration, at which time the provisions of law amended by this act shall be 21 continued in full force and effect as they existed prior to the enact- 22 ment of this act. 23 § 14. This act shall take effect immediately.
